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Oct 10, 2022
Buying your first home? Things to know.
When you are looking to buy your first home, the process can seem overwhelming between the finance, real estate jargon and the advice that you will receive from anyone that you talk to. Buying your first home is an exciting step into the world of home ownership and it doesn’t need to be as stressful as you are sometimes advised. It takes preparation and knowing your limitations before you set on the path the buy. Work out your finance Before you begin to look for your home and risk falling in love with a property that may be well beyond your means, talk with your financial adviser or financial institution to work out how much you can borrow. They will look at factors like how much you have in savings, if you are borrowing with someone else, your income and any assets and if there is enough for a deposit and stamp duty. You may be pre-approved for a certain level of finance based on the information that you provide, and this will give you a limit to know how much you can potentially spend. If you are pre-approved, it will also mean that you need to stick to a budget when you are looking as any changes in your income or expenses before you purchase may affect your final finance approval. Look into first home buyer incentives In many states, there are provisions for first home buyers to receive discounts on things like stamp duty or lump sums toward purchasing your first home. Usually, there are conditions around the purchase price to qualify, using the property as your principal place of residence and if you are buying a pre-existing home or building. Stamp duty is a government tax that is required in each state and there are often incentives for discounts or sometimes no stamp duty to be paid, depending on qualifying factors. It is best to check your state and talk with your financial advisor about what you may be eligible for. Searching for your new home Once you have a figure and budget in mind, you can start looking for your new home. It is important to look for properties that are within your means, remembering that factors will affect your mortgage, like interest rate hikes and the general cost of living and you don’t want to be caught short in paying your mortgage. Work out the suburb that you would like to live in and the size of the property and your list of inclusions as part of a needs, must and wants list. This can help to narrow down your selection and help with working out the home you would like to buy. When you have a list of properties, the fun part of inspecting homes and preparing for negotiating with sales agents or preparing for an auction begins. Ask our agents as many questions as you need to make an informed decision. Making an offer When you are ready to make an offer, talk with our sales agents who will help guide you through the process and communicate your offer with the vendor. In the case of an auction, they will register you for auction day and be available to answer any questions you may have. When you have made a successful offer and it has been accepted, you will need to pay a deposit of 5% or 10% and contracts will exchange between the vendor and yourself, as the purchaser and then solicitors will prepare contracts for settlement. Throughout the process, our agents are always available to answer any questions that you may have and help you through your first home-buying journey.
Oct 7, 2022
Compliance awareness: investment property
When you make the choice to invest in property, it is important to recognise and be aware of the areas of compliance that you are responsible for as an investor and property owner. There are certain safety areas in the property that need to be made safe to comply with regulations and legislation including areas relating to pools, safety switches, smoke alarms, blinds and windows, balconies, and decks as well as electricity and gas. Pool compliance If your property has a pool, you will need to ensure that any fencing complies with legislation and is inspected and signed off in line with relevant local council requirements. Compliance companies will issue a certificate to show compliance or advise of work that does not meet regulations and needs addressing. Smoke alarm compliance There is a requirement for smoke alarms to be tested and checked annually and to ensure that they are in working order to protect the lives of the property occupants and the property. Smoke alarm companies can be employed to carry out these checks and repair faulty alarms, change batteries and ensure that they are working in line with legislation. Blind cords and window locks Open windows can pose a hazard, especially at certain heights and there are requirements to have limiters and safety devices installed in windows to protect property occupants, especially small children. Blind cords are another area that can be hazardous with loose cords causing choking hazards and they must be secured correctly. These should be checked prior to a tenancy and at regular routine inspections or annually by a service professional. Electricity and gas devices A safety switch should be installed on the main switchboard to protect the property from any electrical faults and the risk of electrical fires. Gas outlets and devices should also be checked regularly to monitor for potential leaks and efficiencies and carry out repairs to these as soon as possible to prevent hazards and protect the property occupants. Balconies and decks Over time timber decking and balconies exposed to the elements can weather and wear. If not maintained, they can fall into a state of disrepair, and they must be maintained to the regulations set by the Building Code of Australia and the associated safety standards. Any maintenance should be completed to keep balconies and decks up to code and install new measures like railings to comply with the relevant safety standards, protecting the property occupants and any guests. Each state is different, and the thought of compliance may seem like a lot of work, however, employing a qualified and experienced property manager who has industry contacts and works with compliance trades can remove this stress from your property investment. Talk with our property managers about how they can help minimise your risks as a property investor and ensure that your property meets compliance requirements.
Oct 5, 2022
Strata fees and your investment
Purchasing an apartment, unit or townhouse can bring the opportunity to live in a property with lower maintenance than a house with minimal to no requirements to maintain yards or other buildings. It can also provide lifestyle amenities such as pools, gyms, and other facilities, however, these also need to be maintained. In many complexes, this is where strata are employed, for a fee to maintain common areas and ensure that any works that need to be carried out to the complex including the facilities, grounds and buildings are covered and these are communicated with the Owner’s Corporation. Strata fees are charged by strata companies for the management of accounts relating to strata levies collected for the property as well as the arrangement of any repairs, maintenance and upkeep of the common areas and spaces of the buildings in the complex. All owners will contribute to the strata levies which are charged out on a quarterly basis and collection is reported to the Body Corporate at regular meetings to ascertain the amount of funds that have been collected from levies. They will then decide on the allocation of these funds to work that needs to be carried out. Kinds of things you might pay for Typically, there are several types of strata fees that are charged out in a complex: Capital work levies or a sinking fund which is collected to pay for the out-of-the-ordinary and more expensive repair items that may need to be carried out. This might include items like upgrading windows, repairs to balconies or updating items in common areas. Admin levies cover the management of the building expenses that occur on a regular basis such as gardening and landscaping, insurance premiums, smoke alarm and fire testing, cleaning, and any utilities such as gas or electricity. Special levies are additional levies that are charged if something unexpected needs to be repaired or is required at the property and cannot be covered by the funds in the capital works levies account. Strata management fees When employing a strata management company to administer and manage the property on behalf of the body corporate, they will also charge administration fees for their services including the daily management of the property and administration of financial records and reports. These fees may include a base management fee on the collection of the levies and in some cases, they may also charge a ‘Schedule B’ fee for managing any disbursements that are related to the property and the Body Corporate decisions. If your property is being used for investment purposes, these fees can also be tax deductible and should be discussed with your tax advisor. Also, our Property Management team can pay these accounts on your behalf from your rental funds as part of our property management service. It is a great idea to ask them how they can help to streamline this task for you.
Oct 3, 2022
Buying your first investment property
Property investment can be one of the safest assets with a strong capital growth and is one of the more popular forms of investment. While the initial and ongoing outlay can be costly, investing in the right areas with robust rental yields can prove rewarding in providing a passive income. Work out your ‘why’ Before choosing to invest in property, work out the reasons why you would like to diversify into this type of asset and if it’s the right path for you. Property investment, unlike buying your own home should be more strategic in the approach with less of an emotional connection. Is it an investment that you would like over the short term with a good rental return, in the medium term to kick start a wealth creation focus or longer-term while planning for retirement? All of these factors may impact the suburbs that you look to invest in and the type of property that you are after. Work out your investment property budget Similar to purchasing your own home, there are requirements that you will need to meet to ensure that you can finance an investment property. Financial lenders may take any equity over your own home into account when considering how much you can borrow for an investment. They will also weigh up the risk factors around your history and expenses that may be required for the property including rates, levies, any capital works, and maintenance. Lenders will also consider the location that you are looking to buy in and current and forecast capital growth in the area and potential income that may come from the property to determine if the rent will cover expenses or if a portion of your income will need to cover the mortgage repayments and other expenses. Work out your location and property type Once you have your why and finance in check, then you can consider the location and the type of property that you are after for investment. It is important to work out if you would like to invest in a house, townhouse, unit, or another style of property as each has different levels of obligations when it comes to regular maintenance and general upkeep. If you choose to invest in apartments, strata levies and responsibilities need to be considered and if a strata complex has a pool, lift access or landscaped gardens, all of these are factored into the strata levies and can increase your costs each quarter, especially if capital works need to be carried out. All property styles will have regular maintenance and upkeep that is required and depending on the age of the home, will determine how soon that needs to be done. You should consider setting aside funds each month to cover for when things go wrong like leaking taps and toilets as well as future refurbishments like paint, carpet, blinds kitchens and bathrooms. An experienced Property Manager can help to take the pressure points off the day-to-day running of your investment property and provide expert advice to maximise your investment. Talk to our property management team on how they can help to find solutions for you to make owning an investment property seamless. If you are considering buying your first investment property, check out this recent post: What is rental yield and how to calculate it.
Sep 29, 2022
Key steps to marketing your home
You’ve made the decision on your sales agent, taken the necessary steps to list the property for sale and you’ve made improvements to the home to help it through a sale. You might be wondering about the marketing and advertising strategy that will be developed to appeal to potential purchasers and get them through the front door. Sell the features and benefits of the property Great advertising copy is a key tool in describing the features and benefits of your home. Buyers will search for their wish list of items through property search engines and keywords can help get your property to the top of their list. One key is listing out the benefits of the property that may appeal to the buyer market you are after. Does it have an abundance of storage? Are the spaces light and airy and are the gardens low maintenance? Your agent will think about the buyer the property is likely to appeal to, in order to craft the best ad copy. Photos and videos to showcase the home Your agent will likely recommend a marketing strategy that includes photos and video. Professional photography is an important factor in the advertising of a property for sale and now, a normal part of selling a home. Many buyers will head to the online property portals to search for a new home and expect to see good quality imagery of the property that shows the style, age and features as well as a floorplan showing the property layout. Video walk-throughs are also a beneficial marketing tool that can increase the number of potential buyers including those who are out of town or overseas and may not be able to attend open homes during the campaign. Get social with the marketing Your agent will also have a social media strategy to expand the reach of the number of potential buyers for your property. They may recommend advertising on various social media channels to increase the demographic that the property may appeal to, to find interested parties. Your sales agent is also likely to market out to their email database of potential buyers to get your home in front of as many people as possible. They will be able to provide information to anyone who may be interested in your property and arrange for them to inspect it. Don’t forget a ‘for sale’ sign When buyers are looking for properties, many will often drive around suburbs to get a feel for the area and work out if it suits their requirements. A well-designed and prominent ‘for sale’ sign can stand out and alert potential purchasers that your property is available and give them the chance to contact your agent for an inspection. With these marketing strategies included for the sale of your property, you can feel comfortable that all potential avenues are taken care of. Thinking about selling your property and wondering if you should make any improvements first? Take a glance at a recent post about three rooms that can add value to your home.
Sep 26, 2022
Renting with pets
Pet ownership has been on the rise in recent years as people add furry friends to extend their family units; and while attitudes are evolving, there are still several things to consider before welcoming a new family member, if you are renting. Seek permission from your property manager and landlord Depending on the type of property that you are renting will determine the levels of permission that are required before you can bring a new pet into your home. In cases where you are in a strata complex including units, apartments and townhouses, permission is required from not only the Owner but also through strata and the Body Corporate. Strata will often require that you complete documents and include registration details for microchipping, vaccination status and council registration to ensure that you comply with the relevant legislation. Your Property Manager may also request that you complete a pet application form prior to approaching the Owner for permission so that they have all the relevant details required for approval. If you cannot provide the necessary details, permission for a pet may be declined and in strata, while the Owner may approve, the body corporate may not. Understand the obligations of renting with pets It’s an exciting step to bring a new pet home and it can be overwhelming in the weeks and months as you are settling them into their new environment. When renting with pets, if you are approved by strata and your property manager, you may be required to sign an agreement outlining your obligations as a pet owner and tenant. These may include requirements while using common areas and care of the property that you are renting. You will often be required to ensure that any damage caused by the pet during your tenancy is rectified once you vacate including repairs to scratches on floors and steam cleaning of carpets and soft furnishings. There may also be repairs needed for door frames if you have a puppy that likes to chew or replacement of screens that may have become torn by an excited kitten or puppy. Other things that may need to be considered are damage that may have occurred to carpets from scratching and a pest spray for fleas or bugs once you have vacated the home. Refer to "Pet proofing your rental home" for extra considerations on deciding to rent with pets.
Sep 22, 2022
Selling your property? 5 Things to remember
There are often several lists of items to factor in when the time comes to sell your property and they could range from repairs to finding the right agent, to presentation and where to move to next. While these are all important factors, five additional areas to consider prior to or during the sale would include, understanding the market, building trust in your agent, checking in on your tenants as well as the property history and access details for future owners. Research the current market If you are a keen property enthusiast, you may already have your finger on the pulse of the property market and have a fine knowledge of what recent properties have sold for and where your home could sit on the ladder. Or, like many, you rely on the experts to advise you on the price and recent sales. To give you a head start, you could investigate through the real estate portals what properties in your suburb are listed or sold for so that you have an idea before engaging a property professional. Build a relationship with your agent Your sales agent is going to work with you through the event and it is important that you feel comfortable with the process and outcome. If you have questions, don’t be shy to ask as many as you need to understand the process and how they will assist you through the sale. Check on the owner and tenant obligations before selling your property If you are selling a property with a tenant, ask your property manager to advise you of the obligations that you have as an owner throughout the sale. This may include access to the property for inspections and notice periods that may be required once the property sells. You may choose to sell the property tenanted or provide the tenant with notice prior to selling, especially in cases where work may need to be done. Your sales agent and solicitor will need to know of any details like lease terms and tenancy details prior to the sale as this may impact the type of buyer that is interested and the terms relating to the exchange of contract. Considering selling a tenanted property? Remember to find the keys and access details Often if you have been living in the property for some time or there have been several tenancies, there may be an abundance of keys to the property, some that don’t fit locks or are even missing. Carry out a stocktake on keys and other access devices like remotes for garages and alarms prior to settlement so that these can all be handed over once the property has changed hands. Check the property history and requirements Are there requirements or caveats that are listed over the property that may impact the sale or attract a different kind of buyer? Older properties may be heritage listed or depending on neighbourhoods and councils, there may be restrictions over potential DA’s or work being carried out. It is important to be transparent with this information prior to the sale so that it can be communicated with potential purchasers and not have a chance to impact the sale. Your sales professional will be able to assist you.
Sep 15, 2022
New home? 5 tips for searching
The hunt for your new home whether it be your first or your fifth home can be overwhelming, especially if you are not prepared. In a strong market, it may also mean that you look through several properties and make many offers before you finally purchase. Determine the type of property Everyone’s journey to homeownership is different and before starting out on the path to looking for your new home, make a list of the requirements that you want or need in a property. Make note of the size of the property that you need including bedrooms and bathrooms, and if you would like a backyard or minimal gardening. Add in your wants, which may be items like pools, gas or electric cooking, storage areas and inclusions. To renovate or not to renovate Consider the type of property that you are looking for and your time. Would you like a property that is a renovator’s delight or something that you can walk into without needing to carry out any work? If you do decide to purchase a property to renovate, you will need to account for additional costs that can come with the work and if you will need to relocate for a period while the renovations are being carried out. Arrange your finance for your new home Speak with your financial advisor prior to researching and heading out on your hunt for a property. Ensure that you have pre-approved finance so that you are ready to make an offer should you find a property that suits your needs and requirements. Look for the location Narrow down the location that you would like to be in. Do you need to be close to school catchment areas, work locations, and public transport or are there certain amenities that are on your must-have list? Once you have decided on the location, you might like to drive around the area and check out the neighbourhood and look at surrounding areas that may be in your budget. Don’t rush the decision about a new home Purchasing a property is a significant purchase and a major life decision. It is wise to consider your decision before you make an offer for the property. When you are inspecting the home, step back and see if you can see yourself living on the property. Does it meet all or most of the requirements that you need or is there more work that would need to be done to the property than you are willing? Above all, trust your gut feeling when you walk into the home. Buying a home can be a very emotional experience and how the property feels when you walk through the front doors, to when you walk around is an important part of the buying journey.